🏠 Is it time to reconsider what additional services you offer?

👋 Welcome to this weeks newsletter - It’s great to be able to provide you with useful updates, marketing tips and information to help you grow your holiday let business.

Quick fact - Did you know it takes me about 6 hours per week to create the articles and content for this newsletter?! Just don’t tell my wife!

See you next Saturday at 5pm?

Phil

Founder, My Holiday Guide

IN THE NEWS

PASC with ASSC and other associations continue to work hard in engaging with the government aiming to at minimum, gain concessions for FHL owners.

New Petition Announced

As an owner you have probably been wondering what you can do to try and stop or at-least change the direction of travel of the proposed changes.

PASC have just announced that they have created a new petition and are asking all FHL owners to complete it ASAP. This is an important step as it helps PASC and other trade associations reflect the gravity of the situation to government.

As part of this activity they asked Francis Clark to update a report on the meaning and impact of the tax changes.

I strongly recommend that you join PASC if you haven’t done so already and download the report from their website.

You can view the full report here. I have also provided a summary of it below. Note : This is not financial advice!

The government is abolishing the FHL tax regime which offers several tax benefits to holiday let owners. This will take effect from April 6, 2025 for individual tax payers and April 1, 2025 for companies.

Key changes and their impact:

• Finance costs: Mortgage interest relief will be restricted to a basic rate tax reduction (20%). This could push some owners into higher tax brackets

• Capital allowances: Relief for capital expenditure on property will be restricted. Only repairs and replacement of domestic items will be deductible

• CGT reliefs: Beneficial reliefs like Business Asset Disposal Relief (BADR) and deferral reliefs will no longer be available. CGT payable on selling or gifting the property will increase

• Pensions: Tax relief on pension contributions may be reduced as FHL income won't be considered for calculating the maximum contribution

There are some transitional rules:

• Existing capital allowance pools can still be claimed

• Carried forward FHL losses can be offset against future UK property profits

Feel free to hit reply with any specific questions you have on this subject and we will look to provide additional insights in the coming weeks and months.

During Airbnb’s recent earnings call, although the companies turnover and profit remain strong ($10.5bn turnover over the last 12 mths with 46% net profit), there were warnings of a ‘softening demand’ as Airbnb lowered it’s projections for the third quarter running.

The renewed competition with hotels has been highlighted as one of the reasons for traveller reduced appetite in short-term rentals.

In comparing short-term rental prices with hotels, according to a report by AirDNA back in March :

The competition with hotels is a good reason Airbnb are looking at offering more personalised, luxury experiences as we have been reporting in the newsletter for the last couple of weeks.

This also makes our topic for this weeks newsletter apt as we talk about why and how you can offer concierge and additional services to your guests.

Consumer confidence continues to improve

In our June 22nd newsletter we looked at how the consumer confidence index and inflation rates were related.

The chart below provides an update on this, showing that consumer confidence continues to steadily improve whilst inflation took a bit of a blip.

With mixed Average Booking Window and Average Length of Stay metrics we will continue to watch and report on the impact this is having on UK short-term rental performance.

How have your booking for summer been so far and how is the autumn looking compared to previous years?

Italy will be rolling out it’s National Database of accommodation facilities and properties for short-term rental or for tourism purposes [BDSR] database by the start of September, requiring all holiday let owners and hotels to register with the government or face a fine.

As the UK continues to pursue it’s own Statutory Registration Scheme, it will be interest to watch how the scheme works and performs in Italy.

Do you need to add ‘no crypto-mining’ to your house rules?!

LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.

Concierge Services And Offering Additional Services To Guests

Although Concierge Services at hotels have been offered for decades, recommending value-added services within the short-term rental market is not commonplace. With hotel concierge services generally being seen by guests as enhancing their stay, how can holiday let owners and property managers incorporate concierge and additional services to improve guest satisfaction whilst increasing the profitability of your holiday let business?

To explore this subject we have written an article that provides some thoughts and suggestions on how you can incorporate recommending additional services to your guests.

You can read the full article here :

FEATURED RESOURCE- BROUGHT TO YOU BY BOOK DIRECT PRO
Highlighting useful tools and resources for your holiday let.

If you currently take direct bookings or are considering it as an option, Jenn Boyles from Direct Booking Success is running a FREE live masterclass on the 22nd August. Within the call she’ll be covering :

• Why expanding your guest base is crucial for scaling your vacation rental business

• The secrets to not only capturing their interest but also gathering the crucial details that turn curious visitors into booked guests

• How to craft compelling campaigns that resonate with new guests and drive them to book with you

• The essential tool and templates that will streamline your marketing and supercharge your success

You can register for free here :

INTERIOR DESIGN
Interior design inspiration and decor tips.

PROPERTIES OF THE NEWSLETTER
We all love looking at and getting inspiration from other properties so here’s our top pick for this edition.

NO FOMO
Missed last weeks newsletter? Here’s one thing you might like.

Resources for Maintaining Cleaning Standards

In last weeks newsletter we highlighted a few different resources to help you maintain cleaning standards.

You can read the full article here :

SHARE AWAY
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